The Middle East’s health insurance market is experiencing significant growth. The sector was valued at just under $140 billion in 2024 and is anticipated to reach $227.09 billion by 2030 with a CAGR of 8.46%. Multiple factors, including government initiatives and technology adoption drive this growth. 

Now, major providers are using digital tools to manage claims, provide customer support, and compare policies. 

A Mordor Intelligence report estimates the insurtech market at $12.09 billion in 2025, expected to hit $18.23 billion by 2030. The report attributes this growth to rapid smartphone adoption, supportive regulations, embedded sales, reinsurance hubs, VC funding, cloud migration, and AI-driven underwriting.

INSURANCE TRANSFORMATION 

Asad ur Rehman, Director, Enterprise Partnerships & Growth, GCC, Valeo Health ME, says technology is driving a shift in insurance from claims-driven to health-driven. “Digital health tools and AI insights now allow insurers to focus on prevention, early intervention, and improved care coordination,” he says. “This transition helps insurers move beyond cost coverage to becoming active partners in their members’ health journeys.”

AI, automation, and digital platforms are now central to insurers’ and health operators’ operations. And this shift, Sanjay Jain, Partner, ME Financial Services Industry Leader, ME Insurance Leader, PwC Middle East, says, is completely transforming health insurance in the region.

He highlights how Saudi Arabia is leveraging AI to predict health trends and automate insurance claims. The Council of Health Insurance has placed data and analytics at the center of its 2025–2027 digital health strategy. Insurtech accelerators in the country are also fostering rapid innovation and injecting fresh momentum into the market. 

In the UAE, insurers have launched fully digital customer journeys powered by AI-driven health assessments, and the insurance sector in Qatar is developing integrated digital hubs that bring together multiple services on a single, user-friendly platform.

“For many people, this means a simpler, more transparent, personal experience with their insurer. What excites us most is how the industry is shifting from reactive to proactive – from stepping in when people get sick to using technology and insights to help them stay healthy in the first place,” adds Jain.

POSITIVE IMPACT

Manal Almutairi, a healthtech expert and Product and Growth Manager at TachyHealth, says digital transformation is improving health insurance by streamlining operations, improving decision-making, and reducing administrative burdens that have historically slowed down the industry. 

In Saudi Arabia, she says, these innovations mean “faster approvals, improved customer experiences, and a healthcare delivery system that aligns with the kingdom’s ambition for a modern, data-driven health ecosystem that can compete on a global scale.”

One of the most important outcomes is the rise of inclusivity and access for underserved populations.

“Technology plays a vital role here by enabling affordable and flexible insurance products through mobile apps, digital wallets, and micro-insurance offerings,” Almutairi notes, explaining that these innovations make it much easier for low-income populations and migrant workers to obtain coverage previously out of reach. 

“By leveraging real-time data, insurers can design policies tailored to different population needs rather than one-size-fits-all approaches.”

The rise of automation is also improving claims processing and reducing insurance fraud. Rehman says, “Fraud detection systems powered by AI can identify unusual patterns quickly, cutting losses and ensuring fair settlements. For patients, this translates into faster approvals, greater transparency, and a more reliable overall claims experience.”

Saudi Arabia’s National Platform for Health and Insurance Exchange Services integrates health data to automate approvals and reduce human error. In Oman, using AI-powered electronic claims, the Dhamani platform has reduced claim timelines from years to just days. 

Jain says across the region, insurers leverage document automation to process settlements faster and more securely. “As a result, claims are now processed automatically through straight-through processing, cutting turnaround times significantly, leading to significant savings.”

“For the end-users, this means quicker reimbursements, fewer disputes and a smoother overall experience. Automation is helping insurers and customers feel confident that claims are handled fairly, accurately, and in real time,” adds Jain.

POTENTIAL RISKS

But with every emerging technology comes risks and challenges. While a KPMG report highlights regulatory considerations, high implementation costs, ethical concerns, and security and compliance issues in implementing AI within the insurance industry, Rehman points to risks such as algorithm bias and weak oversight. 

Similarly, Jain explains that while digital innovation has led to significant benefits, it also raises these challenges around fairness and oversight. 

“AI-driven systems can unintentionally embed bias in pricing and risk assessments if the data or models behind them are not properly managed,” he states. “Weak governance or limited transparency can make accountability harder, while digital-only models risk leaving behind consumers with limited access to technology or lower digital literacy.”

Given those risks, Jain notes that regional regulators encourage insurers to strengthen their bias testing, maintain meaningful human oversight, and preserve offline options. 

“The goal is to make digital transformation inclusive and improve efficiency without losing sight of the human element at the heart of healthcare.”

FUTURE OUTLOOK

Experts say the next five years will bring several transformative developments to the health insurance sector.

“Generative AI will enable personalized customer engagement that feels natural and responsive, while blockchain technology will secure data sharing between stakeholders and eliminate many current friction points,” says Almutairi, adding that wearable devices will allow insurers to design dynamic models rewarding healthier lifestyles with better rates and incentives. 

Additionally, unified national platforms will strengthen collaboration between insurers, providers, and regulators, helping to dismantle silos that currently hinder progress.

With AI-powered claims automation, blockchain-secured data systems, and precision genomics already reshaping insurer operations and patient experiences, Jain says that telemedicine will continue to expand, and immersive virtual reality tools will increasingly support patient care and treatment.

He explains that while GCC health insurance market growth will be driven by the expansion of mandatory coverage, population growth, and higher compliance rates, it will also be strongly supported by technology — including real-time operational platforms, gamification, wellness-focused apps, and wearable devices enabling dynamic pricing for specific customer segments.

“This will mean more personalized care and better health outcomes for most beneficiaries. The focus will continue to shift towards prevention rather than treatment, and technology will be the catalyst underpinning this momentum,” says Jain.

Predictive health analytics, integrated chronic disease management, and personalized prevention programs will also define the next wave of innovation. Rehman says, “These innovations will reduce long-term costs while improving quality of life. By focusing on prevention and early care, insurers can play a pivotal role in transforming regional health outcomes.”